RBI’s Regulatory Move: Bank of Baroda Restricted from Onboarding New Customers via Mobile App

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New Delhi: Bank of Baroda has been debarred from onboarding their customers through ‘bob World mobile application with the immediate effect. In a circular on Tuesday, RBI stated ‘Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application” under the section 35A of the Banking Regulation Act, 1949.

RBI's Regulatory Move: Bank of Baroda Restricted from Onboarding New Customers via Mobile App

RBI clarified that the bank has been further directed to ensure that already onboarded ‘bob’ World’ customers don’t face any disruption on account of this suspension. RBI said that the action is taken on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application.

“Any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI,” said the RBI.”

Plagiarism-Free Version: “In a recent development, Bank of Baroda has faced restrictions on enrolling new customers through its ‘bob World’ mobile application, effective immediately. The Reserve Bank of India (RBI) issued a circular on Tuesday, invoking Section 35A of the Banking Regulation Act, 1949, instructing Bank of Baroda to halt any further customer onboarding for the ‘bob World’ mobile application.

The RBI has made it clear that the bank must also ensure that existing ‘bob World’ customers do not experience any disruptions due to this suspension. This regulatory action was initiated due to significant supervisory concerns related to the bank’s customer onboarding process for this mobile application.

The RBI stated, “Any future onboarding of the bank’s customers on the ‘bob World’ application will be contingent on the bank addressing and rectifying the identified deficiencies and enhancing the associated processes to meet the RBI’s satisfaction.

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